The following table shows historical beginning-of-year prices for two stocks. A B C Year Stock A Stock B 2014 33.47 575.35 2015 31.54 569.84 30.91 594.22 33 617.41 30.7 542.46 32.47 531.9 28.34 490.58 28.37 588.6 29.25 641.98 4+ decimals Part 1 Calculate the annual returns. What was the arithmetic average annual return for stock B? Submit Part 2 What was the variance for stock B? 4+ decimals Submit 3+ decimals Part 3 What was the standard deviation for stock B? Submit Part 4 What was the covariance of returns? 5+ decimals Submit Part 5 What was the correlation coefficient? 1 2 3 4 5 6 2018 7 2019 8 2020 9 2021 10 2022 2+ decimals 2016 2017 Submit
The following table shows historical beginning-of-year prices for two stocks. A B C Year Stock A Stock B 2014 33.47 575.35 2015 31.54 569.84 30.91 594.22 33 617.41 30.7 542.46 32.47 531.9 28.34 490.58 28.37 588.6 29.25 641.98 4+ decimals Part 1 Calculate the annual returns. What was the arithmetic average annual return for stock B? Submit Part 2 What was the variance for stock B? 4+ decimals Submit 3+ decimals Part 3 What was the standard deviation for stock B? Submit Part 4 What was the covariance of returns? 5+ decimals Submit Part 5 What was the correlation coefficient? 1 2 3 4 5 6 2018 7 2019 8 2020 9 2021 10 2022 2+ decimals 2016 2017 Submit
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 2MAD
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Answer final 2
Transcribed Image Text:Intro
The following table shows historical beginning-of-year prices for two stocks.
A
C
Year
Stock B
2014
2015
4+ decimals
Submit
Part 2
What was the variance for stock B?
Part 1
Calculate the annual returns. What was the arithmetic average annual return for stock B?
4+ decimals
Submit
3+ decimals
Part 3
What was the standard deviation for stock B?
Submit
Part 4
What was the covariance of returns?
5+ decimals
Submit
Part 5
What was the correlation coefficient?
1
2
3
2+ decimals
4
2016
5
2017
6
2018
7
2019
8 2020
9 2021
10 2022
Submit
B
Stock A
33.47
575.35
31.54
569.84
30.91
594.22
33
617.41
30.7
542.46
32.47
531.9
28.34
490.58
28.37
588.6
29.25 641.98
TI
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